Iowa House Bill HF2768

Iowa 2025-2026 Regular Session

• Introduced: 4/15/26
• Engrossed: 4/27/26
• Enrolled: 5/6/26

Caption

A bill for an act relating to and making appropriations for state government administration and regulation, including the department of administrative services, auditor of state, ethics and campaign disclosure board, offices of governor and lieutenant governor, department of inspections, appeals, and licensing, department of insurance and financial services, department of management, Iowa public employees’ retirement system, public information board, department of revenue, secretary of state, treasurer of state, and utilities commission. (Formerly HSB 771.) Effective date: 07/01/2026.

Summary

HF 2768 is the state government administration and regulation appropriations bill for fiscal year 2026-2027. It funds a wide range of executive-branch and regulatory entities, including the Department of Administrative Services, Auditor of State, Ethics and Campaign Disclosure Board, Governor and Lieutenant Governor, Department of Inspections, Appeals, and Licensing, Department of Insurance and Financial Services, Department of Management, IPERS, Public Information Board, Department of Revenue, Secretary of State, Treasurer of State, and the Iowa Utilities Commission. The bill sets specific operating appropriations, full-time equivalent staffing caps, and in several cases directs how money must be used, carried forward, or reported on. Beyond base appropriations, the bill makes several policy and fund-management changes. It adjusts or continues dedicated funding streams for items such as workers’ compensation claims, state library and historical services, IowAccess, consumer fireworks regulation, amusement devices, boxing, gaming regulation, and utility and insurance oversight. It also amends code provisions to redirect certain fees into the licensing and regulation fund, modifies how some revenues are deposited or retained, and authorizes limited fee refunds by the Secretary of State. The bill also includes reporting requirements on public assistance fraud investigations and health-facility regulation, plus procurement preferences for Iowa and U.S. products for agencies receiving these appropriations. The bill’s impact on state law is primarily fiscal and administrative, but it also changes several statutory fund destinations and revenue-handling rules. It creates or replenishes appropriations from the general fund and various special funds, limits reversion of certain unspent balances, and allows some agencies to reallocate appropriated money within defined limits. It also amends sections of the Iowa Code governing licensing fees, fireworks, boxing, amusement devices, insurance revenue treatment, and other regulatory programs, thereby affecting how regulated industries, local governments, and state agencies collect, deposit, and spend fees. Overall sentiment appears generally supportive in the legislature, as the bill ultimately passed both chambers and became law as Acts Chapter 1190. The recorded floor votes show a clear majority in favor on final passage, though not unanimously, indicating some partisan or policy-based opposition. The failed motion to suspend the rules for amendment H-8411 suggests there was at least one contested attempt to alter the bill before passage. The main points of contention likely centered on the bill’s mix of appropriations and regulatory fee changes, especially the redirection of revenues, the treatment of unspent balances, and the level of funding for enforcement and oversight functions. Agencies and regulated parties affected by licensing, insurance, gaming, fireworks, and professional regulation provisions would be the most directly impacted stakeholders, while lawmakers concerned about spending levels, fee policy, and administrative control likely drove the opposition reflected in the votes.

Impact

HF 2768 appropriates operating funds for a broad set of state administrative and regulatory agencies for FY 2026-2027 and sets staffing limits, carryforward rules, and reporting obligations. It also amends multiple Code sections to redirect certain fees into specific funds, authorize limited refunds, and adjust the handling of revenues for licensing, fireworks, amusement devices, boxing, insurance regulation, and related programs. These changes affect state agencies, regulated businesses, local governments receiving remitted fees, and special funds used for enforcement and administration.

Sentiment

The bill appears to have had generally favorable support overall, since it passed both chambers and was enacted. The final votes show a majority in favor, but with meaningful opposition, suggesting some disagreement over the appropriations package and related fee/fund changes. The unsuccessful attempt to suspend the rules for amendment H-8411 indicates there was at least one significant effort to modify the bill that did not gain enough support.

Contention

The most likely areas of contention were the bill’s fee and fund reallocations, the extent of agency appropriations, and the policy choices embedded in the appropriations language. Opponents may have objected to directing revenues into special funds, allowing unspent balances to carry forward, or giving agencies flexibility to reallocate money. The failed vote on amendment H-8411 suggests there was a specific disputed amendment, though the available record does not identify its substance. Agencies, regulated industries, and lawmakers focused on budget discipline versus regulatory capacity would be the primary stakeholders on these issues.